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Article: Hollywood Entertainment agrees to $850 million buyout by rival Movie Gallery
- Article from:
- AP Worldstream
- Article date:
- January 10, 2005
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AP Worldstream
01-10-2005
Dateline: NEW YORK
Video rental giant Hollywood Entertainment Corp. has agreed to a buyout offer of about $850 million (euro649 million) from smaller rival Movie Gallery Inc. in a deal that would create a stronger challenger to the industry leader Blockbuster Inc.
But in a sign that Wall Street is betting the fight for Hollywood Entertainment may not be over, investors pushed its shares well above the offered price in early trading.
The planned combination announced Monday of the No. 2 and No. 3 video rental chains would create a company with annual revenue of approximately $2.5 billion (euro1.91 billion) and approximately 4,500 stores.
That would still be a distant ...